DEFINITION of 'IRA Transfer'

The transfer of funds from an Individual Retirement Account (IRA) to another type of retirement account or bank account. IRA transfers are split into two categories: direct and indirect. A direct transfer involves moving the assets, such as stocks and mutual funds, currently held in an IRA account and moving them to a different account without liquidating them. An indirect transfer involves liquidating the assets in the current IRA account and using the cash to open another IRA account.

BREAKING DOWN 'IRA Transfer'

Typically, an IRA transfer is from one IRA account to another. Because the use of IRA assets has tax implications, investors may be taxed if funds are withdrawn and not reinvested. Investors using the indirect method are given a fixed period of time, usually 60 days, in which the funds have to be invested in a new IRA before taking a tax hit.

RELATED TERMS
  1. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
  2. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  3. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  4. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  5. IRA Asset Will

    A document that specifies how the assets in an individual retirement ...
  6. IRA Plan

    A plan that individuals may establish to arrange and plan for ...
Related Articles
  1. Retirement

    5 Secrets You Didn't Know About Traditional IRAs

    A traditional IRA gives you a current-year tax benefit and future years of tax savings – minus the income restrictions that limit who can have a Roth IRA.
  2. Retirement

    5 Unusual IRA Investments Options

    These investment vehicles are less common, but could provide great returns while diversifying your retirement holdings.
  3. Retirement

    4 Basic Facts To Know About IRAs

    Money in an IRA can work harder for you. Here's what you need to know first.
  4. Retirement

    Moving Retirement Plan Assets: How To Avoid Mistakes

    Sometimes things go wrong in a simple transfer of funds. Make sure you know how to avoid penalties.
  5. Financial Advisor

    Roth IRA Vs. Traditional IRA

    Learn more about the differences between a Roth IRA and traditional IRA.
  6. Retirement

    House Your Retirement With Self-Directed Real Estate IRAs

    Investors are now able to invest directly in real property, mortgages and other assets.
  7. Investing

    6 IRA Tax Changes That Could Impact You Soon

    Here are several potential measures that could come before Congress in 2017 that would negatively impact the tax benefits of IRAs.
  8. Retirement

    Which Assets Can You Hold In Your IRA?

    You're not allowed to hold every kind of asset in an IRA. What can you include – and which ones are banned?
Hot Definitions
  1. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  2. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  3. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  4. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  5. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  6. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
Trading Center